Energy Crisis: NSW can’t keep coal plants, or aluminium smelters running, prices hit $14,000MW/hr

It’s not even summer.

NSW has been hit by clouds and a lack of reliable coal power. Prices are soaring. In NSW the Tomago Aluminium Smelter consumes about 10% of the state’s electricity. It has been forced to switch off three times in the last week because there was not enough reserve power on the grid.

The boss of Tomago, Mr Howell, said Australia is “at a crisis point with our energy system”.

“This is not summer with extreme demand. This is the likely future of our energy grid as once reliable baseload generators exit the [NEM] and are mostly replaced with intermittent wind and solar projects with no practical storage to speak of,” Mr Howell said. “Our energy debate should not advocate either renewables or conventional thermal,” he said.

— SMH, Peter Hannam,

Aluminum pot lines can only sit idle for a few hours before they cool too far and the damage becomes permanent and wildly expensive as the aluminum becomes solid.

Renewables-fans blame the emergency on the unreliability of coal

See @TheAustraliaInstitute. Suddenly Australia is the only western nation on Earth with coal resources that can’t […]

Solar overload — “Costs a fortune” as the super Duck Curve flood of electricity hits Australia

Ladies and Gentlemen, Australia is now romping in as Star-Crash-Test-Dummy in the renewables stake.

Proportionally, we have more uncontrolled solar roof top generators than any other nation. We’re in uncharted territory: about 20% of houses in Hawaii and California have Solar PV, but in Western Australia, it’s 25%. In Queensland it’s 30% and throughout Australia we are adding 100MW a month and it’s like a whole new coal fired station every year (except it doesn’t work most of the time).

Strap yourself in! This is more useless infrastructure than anywhere else on planet Earth. The only time solar PV panels provide something we might need is at afternoon tea time in summer when airconditioners are on. So for three quarters of the year they provide electricity when we don’t need it, and for three quarters of every day they don’t even work. The rest of the time they burn capital, increase the blackout and fire risk and sit there collecting dust and hail stones.

Electricity at the wrong time is not just wasted, it’s a burden

Too much electricity bumps up the grid frequency and voltage, potentially damaging equipment and risking blackouts. Obviously we have to “manage” this flood of […]

Even in sunniest Queensland, solar can’t run without big subsidies — so big they have to be kept secret

Solar is so competitive that the Queensland government has to pour in money to keep solar developers from running away.

How much money? Who knows. Whatever it is, it’s so big, the government has to keep it a secret.

Queensland taxpayers kept in dark as they prop up solar firms

MARK SCHLIEBS, The Australian

The Queensland government is concealing its financial support for large-scale renewable energy projects, guaranteeing subsidies to solar companies that do not ­appear on balance sheets.

With an expert panel previously finding the government would need to spend between $500 million and $900m in subsidies to meet its 50 per cent renewable energy target by 2030, there are now calls for spending to be made public.

The government has struck four deals with major solar-farm developers, under “contracts for difference”, with floor prices nominated for the sale of their ­energy in order to attract finance. When the market price falls below that threshold, the government has to make up the difference.

Luckily for Queensland taxpayers — who don’t know how to spot a good investment or the energy source of the future — the Government can spend their money for […]

China: solar stocks plummet as solar subsidies cut to “make electricity cheaper”

Back from travels finally. So much to catch up on.

Last week, the world leading nation in solar panel manufacturing announced big cuts to subsidies in order to make their electricity cheaper. Can you believe? The cuts are big enough for The Motley Fool to headline this “Why the Lights Went Out on Solar Today”. (h.t GWPF)

Image by Snowacinesy

Put this in perspective — in late 2016, Scientific American declared that China Is Dominating the Solar Industry. Apparently, the Chinese forced the prices down, drove US leaders out of business, and the US could only hope to be second. Without a hint of impending doom, Scientific American went on to title one sub-part: AN INDUSTRY PROPELLED BY TAX CREDITS. The Chinese government picked a “winner”, grabbed the industry from all over the world, brought it to China, and ran with it. Now apparently rising electricity prices hurt too much. Who could have seen that coming?

“According to some veterans in the U.S. solar industry, China bought solar companies and invited others to move to China, where they found cheap, skilled labor. Instead of paying taxes, they received tax credits.”

Last week the Chinese government announced […]

Extraordinary powers triggered: Blackout threat from rooftop solar panels in Western Australia

Panels are going in everywhere in Perth.

In Western Australia the uptake of solar panels has rocketed as electricity prices leaped — there’s a slow motion solar train-wreck underway. Solar PV panels are now on more than one in four houses and growing at a phenomenal rate.

The South West Grid is small, with around one million customers and a daily peak of around 2 – 3,000 MW. But the solar generation now totals as much as 1,000MW, and is growing at blistering 180MW a year. Already, there are times solar can be the largest “single” source on this grid, and the AEMO has no control over it, which is why emergency notices are being issued more and more. The AEMO suggests the answer is more batteries, but we are still subsiding the installation of these unnecessary panels making the problem worse, and electricity prices are forecast to rise another 7% this year. As readers TomOMason and TonyfromOz say, so much for cheap solar — watch out: “Batteries Not Included”. The hidden costs get you every time, and the cost of the impact on the rest of the grid is only becoming known as we do this live experiment.

[…]

Australia: where governments spent thousands to irrigate prime land, then subsidize a solar farm on top

Obviously, if you are a thirsty solar panel, Australia is the place to be. We have ready-made irrigated high quality agricultural land set to be covered with an uneconomic and unreliable solar panels.

Only collective-coerced taxpayers are stupid enough to pay for this.

It’s so silly, groups of unconnected farmers of all different kinds are rallying together to oppose the flagrant waste.

Prime agricultural land loss or booming future energy? That’s the solar planning conundrum for Victoria

Residents near Shepparton are concerned that farmland the Victorian Government has invested in under the Murray-Darling Basin Plan will be lost to agriculture as the state undergoes a solar farm boom.

Four applications for solar farms in the Greater Shepparton region that could produce up to 243 megawatts of electricity have been proposed for Tatura, Tallygaroopna, Lemnos and Congupna, and have been ‘called in’ by the Victorian planning minister.

Critics say there has been no thought put to where the solar farms are being placed and how much prime agricultural land is being lost, and while there is suitable, more arid land available close by.

At least two of the solar farms have […]

Bloodbath in the German solar “industry” — without subsidies 80,000 solar jobs are gone

Climate Worriers have the most terrible luck. All the runes were lined up for Solar power — it is nearly free, pours from heaven, and millions of people seem to need energy “pretty often”. Plus universities and governments have gifted twenty years of free advertising about its Glorious Wonderfulness. Solar power is also used by the Celebrity Saints of Gaia thus filling fashionable, spiritual, and tribal needs. On a good day, it fills some megawatt needs too.

Despite all this, without forced payments from unwilling and unwitting non-users of solar power, investors are fleeing and the solar industry in Germany is collapsing. How can that be?!

Lawrence Solomon: Are solar and wind finally cheaper than fossil fuels? Not a chance

Financial Post

After the German government decided to reduce subsidies to the solar industry in 2012, the industry nose-dived. By this year, virtually every major German solar producer had gone under as new capacity declined by 90 per cent and new investment by 92 per cent. Some 80,000 workers — 70 per cent of the solar workforce — lost their jobs. Solar power’s market share is shrinking and solar panels, having outlived their usefulness, are being retired without […]

Even AEMO head admits solar panels are a big “disrupter” in Australia – fears big players may abandon grid

The land of the sunburnt country finds that the rapid uptake of solar is a headache, disrupting the grid, adding variability, making management more complicated. Read right through. The head of the AEMO gives an upbeat talk, but the ominous message is that solar panels are flooding in, there are lots of problems, and not only are baseload generators leaving the market, but there may come a day when things are so ludicrously expensive that big energy customers leave to generate their own too. Is that what the death of a grid looks like?

 

Audrey Zibelman is the head of the AEMO – Australian Energy Market Operator – which has the responsibility of managing the electricity and gas market and grid stability for all Australians. To hear her, you’d think the future is renewable, the transition is not being artificially forced on the market, and there is no alternative to alternative energy.

Zibelman tosses out pat free-market lines with a straight face, saying at 17:20 that we never really want governments to “pick a technology”, ignoring that this whole transition, all of it, is only happening because governments “picked a technology”.

Listen at 21:30 to get an […]

Bill shock debacle: Solar rooftop subsidies in Australia doubling, will cost $1.3 billion this year, $160 per household

And we wonder why electricity bills are rising?

Many Australians don’t realize that those without solar panels pay are forced to pay for those who do through their electricity bills. That pain point is about to launch itself above the horizon and into public view. For those readers with solar panels (there are a lot) this is not about you, this is about the system. Our badly managed grid is now so obscenely inefficient and expensive, droves of people are installing solar panels because they feel they have no choice.

Tony Abbott says “Australians are paying too much for our emissions obsession”.

NSW MP Craig Kelly: “It’s effectively a reverse Robin Hood scheme where we are ­increasing the electricity prices on the poor to reduce electricity ­prices for the rich.”

As Jo says: We could have put that billion into a new hospital. Instead we put magic squares on our houses, hoping to get nicer weather.

Solar Subsidies must end Solar Panels on Australian rooftops cost electricity customers $500m last year, and are projected to cost a staggering $1.3 billion this year:

The Clean Energy Regulator has released figures showing that more than 1057 megawatts of ­capacity was […]

German solar: 10 hours of sun in December makes 40 Gigawatts of nothing

From Pierre Gosselin at No Tricks Zone:

Germany needs 80GW of electricity. It has 40GW of installed solar PV.

See the graph: The red line is what the country used, and the orange bumps are the solar contribution.

Clearly, solar power will take over the world.

In December, Germany got ten hours of sunlight. That’s not a daily figure, that’s the whole month. So in summer on a sunny day, solar PV can make half the electricity the nation needs for lunch. In winter, almost nothing. From fifty percent, to five percent.

Imagine what kind of havoc this kind of energy flux can do. Not one piece of baseload capital equipment can be retired, despite the fact that half of it is randomly unprofitable depending on cloud cover. Solar PV eats away the low cost competitive advantage. Capital sits there unused, spinning on standby, while wages, interest, and other costs keep accruing. So hapless baseload suppliers charge more for the hours that they do run, making electricity more expensive.

They just need batteries with three months supply. It will be fine once Germany turns the state of Thuringia into a redox unit.

Read about it: Dark Days […]

Forget Megawatts, ABC invents new unit of power — “size of Tasmania”

Outback couple build solar farm to prove fringe-of-grid power generation needs

Building a $14 million solar farm is an expensive way to send a message about electricity prices, but Doug and Lyn Scouller said they were left with few options.

In Normanton, 500 kilometres north of Mount Isa in north-west Queensland, the Scoullers built a solar farm big enough to power an area almost twice the size of Tasmania, in a move to prove to stakeholders the benefit of positioning power generation sites at the end of the grid.

In old fashioned terms, the “farm” produces five-megawatts. But yesterday, Tasmania didn’t use 5MW it used 1,072 MegaWatts. So this solar farm would have supplied 0.2% of the houses and businesses on an area “twice the size of Tasmania”. The only Tasmania-sized-areas that would be functioning on 5MW are in the empty desert or the Great Southern Ocean.

And we wonder why some Australians think solar power is a no brainer. If this little farm can supply 120,000 km2, we just need another 60 like it, and we could do the whole continent!

ABC journalists are not good with numbers. If only they had a billion dollars […]

Some days one thousand MW of solar vanishes in Australia

The Australian national grid stretches from the tropics to the cold temperate zone from 16S to 43S. You might think that along those 40,000 kilometers of transmission lines there is always somewhere somewhere sunny at midday, but some days you’d be wrong.

James Luffman at WattClarity, noticed this extensive cloud arrangement affecting solar on Friday May 19th. On that day, a one thousand MW generator wasn’t there when it was expected to be.

Cloud patterns on Friday 19th May 2017 – leading to a day of low Solar PV output, NEM-wide

By James Luffman | Published Fri, 25 August 201

Cloud cover over Australia, map, preventing solar PV generation.

How often does this happen? Hard to say, since data on rooftop PV has only just started to be released. It may not be as often as wind turbines, which simultaneously flounder across the whole Australian grid every 10 days or so.

This kind of comma-shaped band of cloud is relatively common over eastern Australia, when you have moisture from the Coral Sea area feeding into a trough with a low-pressure system near SA or VIC.

In this particular case of 19th […]

Only 10% of power allowed from solar in Broome WA to stop grid “fluctuations”

When too much solar is more than enough

The WA government-run electricity provider (Horizon Energy) has called a halt to new solar installations in Broome, a town in Northwest WA that is not connected to the national grid, or even the main WA grid. (It’s 2,000km north of Perth). About 10% of the town’s power comes from solar* but apparently the little grid can’t handle the fluctuations, so the early birds got the subsidies, and the rest got grumpy.

June 3rd, ABC:

Broome residents tire of cap on solar power installations Horizon Power only allows 10 per cent of the town’s power to come from solar due to issues with grid fluctuations This leaves some residents unable to install a solar system that connects to the grid Horizon is trialling battery storage technology in other WA towns and hopes to expand this to Broome

Residents in the Kimberley town of Broome have said they are fed up with being prevented from accessing solar power despite living in one of Western Australia’s sunniest towns.

State-owned energy utility Horizon Power allows just 10 per cent of the town’s power to be generated from solar to protect the grid […]

Canberra man uses subsidies, “invests” $20,000, still pays $700pa in electricity. Hopes to break even in 14 years.

A fairly crappy investment in every sense — even as a “subsidy farmer”:

…renewable energy proponents say individual consumers like Mr Pulford could play an increasingly important role as citizen investors.

“I say it is a little bit gold plated,” Mr Pulford says of his $20,000 investment.

‘The new system was installed last month and he is already generating enough power to run all his home energy needs, charge his son’s hybrid SUV and sell excess back to the grid. “It ranges between $2 to about $1.90 a day for energy and that can be with the clothes dryers and bar heaters on.”

Mr Pulford said he expects to pay off the investment within 14 years.

He’s excited that his electricity bill is only $700 a year, after laying out twenty grand. After 14 years his “investment” will start to pay off, assuming the batteries are still running, the solar panels are clean, and the inverter didn’t need replacing. Those battery warranties, at best, are ten years. He might get lucky. Without subsidies, his “pay-back time” would be something like 30% longer.

In the ACT, 250 homes with Reposit technology […]

Rooftop solar destroying baseload profitability and proud of it

What other heavily subsidized industry brags about its ability to provide a product for one quarter of the time it’s needed? Vale sunny-day-solar!

Pick a day, an hour, and what are the chances solar will be there for you? A lot less than one in four, because last Monday’s peak in South Australia was an all time record. Every day in the last year was worse.

And so much for cheap… the price when solar power peaked was still close to $50/MWh. Compare that to most of the years of the national electricity market operating when average prices were $30/Mwh.

The price dip at 6am (the black-line bottomless gully), has nothing to do with solar, but was caused by wind power. Far from being useful, essential, or productive, solar and wind power are playing havoc with a normal market, destroying the chance for cheap, reliable energy to find a place. As long as we force the market to accept this non-dispatchable supply, we are actively punishing reliable power. What investor in reliable energy would look at this and head to South Australia?”

 

Giles Parkinson was excited at Reneweconomy: Rooftop solar provides 48% of South Australia power, pushing grid […]

Taxpayers give $300m to Saudi billionaire for solar plant that makes 2% of old dying coal plant’s power

It will only take 50 plants like this, and $15 billion spare dollars, to replace the Liddell coal station (8,000GWh), now slated for closure in 2022.

$300m handout to Saudi tycoon for solar farm

Australians are set to pay $300 million in subsidies to an outback solar farm owned by a Saudi Arabian billionaire in a new test of the federal government’s looming energy reforms, escalating a dispute over whether to cut the handouts to keep coal-fired power stations alive.

AGL’s controversial Liddell coal power station in the NSW Hunter Valley generates 50 times as much electricity as the Moree solar farm in the state’s north, which stands to gain big subsidies from households from higher electricity bills until 2030…

But we need more chinese-built glass panels that make green weather-controlling electrons.

Lucky solar power is so competitive. Look at the money roll…

The Moree solar farm generates 150,000 megawatt hours of electricity a year, about 0.08 per cent of the 200 terawatt hours produced on the national electricity market every year. The project is forecast to collect about $50m in payments over the next four years and $90m in the following decade under the existing […]

Who needs solar? Traders burnt during the eclipse: No sun, but lots of cheap electricity

Remember the Electrical Eclipse-Fear? For months, people were coached to use less electricity during the eclipse for fear that the grid might fall over as marvelous new-revolution-solar stopped working. The media were selling the message that we might not cope without solar. I figured this would be as big a threat as a cloudy day (but easier to prepare for.).

So after all the spin, what happened? Electricity was massively oversupplied, and spot prices went negative.

Apparently people went outside to watch the sky. (At least that’s Southwest Power’s excuse.)

Most of the groups that hyped the fear don’t seem to have mentioned the failure so much:

Why Energy Traders Got the Eclipse So Wrong — Bloomberg

Grid operators and traders thought they were totally prepped for the historic U.S. solar eclipse. There was just this one thing they didn’t completely factor in: “irregular human-behavior patterns.”

That’s the technical definition, from the folks who manage the electricity network at the Southwest Power Pool, for the conduct of millions of Americans who were outdoors ogling the moon shadowing the sun instead of cranking up the A/C in homes and offices.

This was a bummer for […]

Historic Eclipse will test US solar-power grid like … clouds do

Eclipse Map: NASA

Feel the panic. Or not.

Historic Eclipse Will Test America’s Grid as Solar Waxes, Wanes

Grid operators, utilities and electricity generators are bracing for more than 12,000 megawatts of solar power to start falling offline as the moon blocks out the sun across a 70-mile-wide (113-kilometer) corridor stretching from Oregon to South Carolina.

This is the first major test of the power grid since America started bringing large amounts of intermittent solar and wind resources onto the system. It comes just as the grid is undergoing an unprecedented transformation whereby flexible resources such as battery storage will complement growing supplies of solar and wind.

Reader Andrew writes: “The path of totality is trivially narrow although the partial eclipse is quite wide. But they mustn’t have clouds in the US.”

Indeed.

Looks like it is being marketed as some kind of dummy run to “prove” intermittent energy will not hurt the grid when it “takes over”?

The celestial event provides an opportunity to test plants, software and markets refined in recent years in anticipation of the day when renewable energy becomes the dominant source of power.

Or perhaps it’s […]

SA Solar Thermal plant is a copy of US plant that was out of action for one third of its life so far

Crescent Dunes, Solar Thermal Plant, USA. | Wikimedia Author, Amble.

A company called SolarReserve is planning to build the new Aurora 150MW solar thermal plant at Port Augusta, which is apparently a copy of their Crescent Dunes plant in the US. But that project has been offline for most of the time since last October. The whole SA government is meant to be running 24/7 off “solar power”, which allegedly only has about 8 hours of energy stored up (as heat in the molten salt block). So an 8 month break will be a bit of problem for the SA government (except of course, we all know that the real baseload backup here at 4 or 5am everyday, and most of the day in winter, is ultimately the very fossilized gas and coal.) Since the project only began working in Sept 2015 it managed to operate for all of one year and one month before it went offline for 8 months due to a leak. The SA State Energy Minister is not concerned saying it was a construction issue and SolarReserve “have learnt from that”.

The 150MW myth: most of the time it will be less, a lot less […]

Japan: Fifty solar PV companies already gone in 2017 as subsidies end. Coal soaring.

What’s the word for competitive-but-needs-a-subsidy? Broke…

One hundred solar PV companies are forecast to collapse in Japan this year alone.

Up to 100 solar PV firms in Japan could face bankruptcy this year, with more than double the number of firms going bust in the first half of this year than the same period in 2016.

According to corporate credit research company Teikoku Databank, which surveys companies across various industries and has produced its third report on solar PV company bankruptcies, 50 companies in Japan’s solar sector have already gone out of business in the first six months of 2017.

While the market overall has rapidly expanded from the launch of the feed-in tariff (FiT) in July 2012, Teikoku Databank acknowledged that there has been a slowdown in deployment in the past couple of years as the government successively made cuts of 10% or more on an annual basis to the premium prices paid for solar energy fed into the grid.

Bankruptcies have doubled in the industry since last year.

Meanwhile Japan plans to build at least 45 HELE Coal Plants.

Check out the map of “coal in versus coal out” in Japan. For […]